BREAKING NEWS: Russia will finance the Ukrainian Armed Forces for the first time: the Verkhovna Rada increased defense spending.

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Most of the increased expenses will be covered by income from frozen Russian assets.

The Verkhovna Rada adopted a law increasing current state budget expenditures on security and defense by UAH 324.7 billion.

As reported by a UNIAN correspondent, 297 people’s deputies voted in favor of adopting the bill as a whole.

Also, 293 people’s representatives supported the instruction to the speaker of parliament to immediately sign the adopted bill and send it to the president for signature.

As reported by the Chairperson of the Verkhovna Rada Budget Committee, Roksolana Pidlasa , these funds are intended for:

UAH 210.9 billion – for the Armed Forces of Ukraine;
99.1 billion – for the production and purchase of weapons and ammunition for the Ukrainian Armed Forces;
8.1 billion UAH – to the National Guard;
4.3 billion UAH – for the purchase of drones, which is carried out by the State Special Communications Service;
UAH 1.3 billion – for the SBU;
918 million UAH – to the State Special Transport Service;
83 million UAH – to the State Border Service;
28.8 million UAH – for the Main Intelligence Directorate of the Moscow Region;
8 million UAH – for the Foreign Intelligence Service.

This amount is planned to be covered from several sources. Specifically, UAH 294.3 billion will come from international aid—EUR 6 billion, which will be provided through the EU’s ERA loans macro-financial assistance program. Repayment and servicing will be covered by proceeds from the immobilized Russian sovereign assets.

Non-military spending is expected to be reduced by UAH 10.4 billion, the most significant of which are expected savings from servicing the national debt (UAH 6.45 billion) and savings on state guarantee obligations (UAH 3 billion), which do not need to be paid this year, as well as almost UAH 1 billion in savings from proposals by individual government agencies.

According to Pidlasa, revenue from personal income tax and military levies from military payroll payments in November and December is expected to increase by UAH 20 billion (since the total amount of labor costs increases, personal income taxes will also increase).

Budget expenditure increase – latest news

In July 2025, the Verkhovna Rada already increased budget expenditures for military needs by UAH 412 billion. The main factors influencing the revision of the state budget revenue forecast were the Ministry of Economy’s revision of certain macroeconomic indicators for 2025 and the increase in actual revenues from certain revenue sources.

In August, the Verkhovna Rada adopted amendments to the 2025 state budget law , increasing spending by 40 billion hryvnias. The adopted law primarily affected non-military spending.

(c)UNIAN 2025